SEVEN-ELEVEN
Seven-Eleven 2010 - 2011 Corporate Profile
JAPA n Co., Ltd.
8-8 Niban-cho, Chiyoda-ku, Tokyo, 102-8455
Telephone: 03-6238-3711 (Main)
h t t p : / / w w w. s e j . c o . j p /
This brochure has been printed on recycled paper.
Copyright 2010 Seven-Eleven Japan Co., Ltd.
Reducing 6％ gas from the green house effect is one
of the task of Kyoto protocol. To be realized this
task,the gas have to be absorbed 3.9％ by domestic
timber. We use domestic timber as the papermaking
material for producing this booklet. Our use of
domestic timber contributes to the expansion of
carbon absorption by Japanese forests.
Messages
Convenience stores are now undergoing the most significant
turning points in the history of their existence.
Customers' lifestyles are also undergoing significant turning
points due to the advent of the aging society, the upward trend
of single- and double-income households, and the increasing
numbers of customers who "purchase daily use products at
neighborhood stores without spending extra time."
On the other hand, since the number of medium- to small-size
retailers has been decreasing nationwide, we consider the role
of Seven-Eleven as a "Company that Responds to Changes" is
Chairman and
CEO
Toshifumi Suzuki
expanding as we work to address our customers' needs.
Steadfast attitude to "offer products and services
from customers' points of view" supports success
in times of accelerating change
Seven-Eleven was born in 1974. When the domestic consumer market
was drastically changing from being a "sellers market" to a "buyers
market", Seven-Eleven was born to modernize management of struggling
small- and medium-size retailers to enable them to realize healthy growth
and development, and enhance their productivity.
Seven-Eleven ceaselessly continues to innovate to meet changing social
trends and customers' needs based on a unique franchise system that
draws on confidential relationships between franchisees and
Headquarters, stores that use the world's largest information network,
and a product development system that is capable of reflecting
customers' needs in a timely manner.
Corporate Philosophies
Modernization and Revitalization of Existing
Small- and Medium-Sized Stores
Co-existence and Co-prosperity
Seven-Eleven is now undertaking various steps to evolve into
the convenience store of a new era by redefining the value of
convenience stores as being "convenient neighborhood stores."
We are focusing our efforts on developing a line of products and
services that are capable of better responding to our customers'
daily needs. Such products and services include the group's
From "Oh thanks! It's open" in 1974
to "Near and Convenient" in 2010
"Seven Premium" private label range that includes a wide variety of products ranging from delicatessen and frozen food products to daily-use products, "chilled bento (chilled boxed meals)"
Convenience stores receive consumers' support as a useful part
of their daily lives
that feature a good balance between fresh taste and longer shelf
life, and the "Seven-Meal Service" door-to-door delivery service of well-balanced prepared meals.
In addition, through collaboration with IT networks and group
companies, Seven-Eleven provides an e-commerce shopping
site called "Seven-Eleven Net", which is appreciated by cus-
President and
COO
Ryuichi Isaka
At the time Seven-Eleven was born, people's living hours were getting
longer along with the Japanese economic growth. Seven-Eleven enjoyed
overwhelming support, particularly among the younger generation, as
stores that were open from early in the morning until late at night. Thirty
five years later, Japan's social structure has changed to the point where
there is now an increasing number of senior citizens and double-income
households, both of which are rapidly increasing the need for a retailing
tomers for the unique product selection it offers, "multi functional copy machine" that can be used to issue travel and event
tickets, and financial services through Seven Bank ATMs in
order to provide additional convenience as service centers.
In parallel with the efforts being made to provide the service to
meet the particular needs of each individual in Japan, SevenEleven is strongly promoting its globalization, too.
We are promoting our brand power as a "World-class SevenEleven brand" and have set our sights on jointly developing
products with overseas Seven-Eleven licensees and manufacturers as well as procuring store facilities, equipment and sharing
information systems with them globally.
Seven-Eleven is determined to move the convenience store
business into a new era by integrating together an outwardlooking standpoint with local customers' perspective.
1974
system that enables customers to shop for daily necessities quickly and
conveniently at neighborhood stores. The long-running negative trend in
the number of small- and medium-sized retailers makes the need for
"neighborhood and convenient" stores even more compelling.
In order to meet these trends, Seven-Eleven is pushing forward to create
new and attractive stores by reforming the product selection and services
we offer.
2010
Seven-Eleven stores are attracting more senior citizens and housewives
than ever before due to our wide product selection ranging from
delicatessen and chilled bento (chilled boxed meals), that can be stored,
to articles for everyday use including detergents and kitchen utensils.
We received customers' support by offering a new value concept called
"Time Convenience" that enabled people to shop from 7:00 in the
morning until 11:00 at night (photo shows our first store, Seven-Eleven
Toyosu).
1
Seven-Eleven Business Overview
Seven & i Group
Seven & i Holdings Aims to Create a "New Comprehensive Lifestyle Industry"
Seven-Eleven Japan is also a Member of the Group
12,771
Stores in
38 Prefectures Nationwide
In addition to playing a central role in the convenience store business, Seven-Eleven contributes to the
development and operation of new products and services by collaborating with other group companies.
(As of the end of June, 2010)
Yamagata 134
● Convenience Stores
Seven-Eleven Japan Co., Ltd.
7-Eleven, Inc.
SEVEN-ELEVEN (HAWAII), INC.
SEVEN-ELEVEN (BEIJING) CO., LTD.
SEVEN-ELEVEN CHINA Co., Ltd.
● General Merchandise Stores
Ito-Yokado Co., Ltd.
Marudai Co., Ltd.
Hua Tang Yokado Commercial Co., Ltd.
Chengdu Ito-Yokado Co., Ltd.
● Food Services
Seven & i Food Systems Co., Ltd.
- Restaurants (Denny's, Famil and others)
- Fast food restaurants (Poppo and others)
- Contract Foods
Seven & i Restaurant (Beijing) Co., Ltd.
● Financial Services
Seven Bank, Ltd.
SEVEN & i FINANCIAL GROUP CO., LTD.
IY Card Service Co., Ltd.
SE CAPITAL CORPORATION
K.K. York Insurance
Seven Cash Works Co., Ltd.
● IT / Services
Seven & i Netmedia Co., Ltd.
7dream.com
Seven Net Shopping Co., Ltd.
Seven Culture Network Co., Ltd.
Seven Internet Lab. Co., Ltd.
SEVEN & i Publishing Co., Ltd.
Seven-Meal Service Co., Ltd.
GOTTSUO BIN CO., LTD.
PIA CORPORATION
Ishikawa
13
Fukui
22
Shiga
166
183
● Department Stores
Yamaguchi 237
Kyoto
Sogo & Seibu Co., Ltd.
- Sogo
- Seibu
- Robinson
Fukuoka
669
Shimane
Saga
139
Niigata
345
Nagano
367
Toyama
41
Gifu
74
Hokkaido
7
815
Iwate
61
Miyagi
324
Fukushima
377
Gunma
357
Tochigi
341
Ibaraki
525
Saitama
875
Tokyo
1,683
Chiba
760
● Food Supermarkets
Kanagawa
894
York-Benimaru Co., Ltd.
York Mart Co., Ltd.
SHELL GARDEN CO., LTD.
K.K. Sanei
Beijing Wang fu jing Yokado Commercial Co., Ltd.
Yamanashi
161
Shizuoka
472
Osaka
558
Aichi
564
Hyogo
379
Mie
40
● Specialty Stores
Nara
62
Mary Ann Co., Ltd.
Oshman's Japan Co., Ltd.
THE LOFT CO., LTD.
Akachan Honpo Co., Ltd.
Seven Health Care Co., Ltd.
Tower Records Japan Inc.
Wakayama
40
76
Okayama
199
139
Hiroshima
388
Kumamoto 200
Oita
Nagasaki
Miyazaki
84
● Real Estate / Security
Mall & SC Development Inc.
IY Real Estate Co., Ltd.
IKEBUKURO SHOPPING PARK CO., LTD.
Yatsugatake Kogen Lodge Co., Ltd.
K.K. York Keibi
● Manufacturing and Processing
● Others
IY Foods K.K.
K.K. Terre Verte
Life Foods Co., Ltd.
SEVEN & i Life Design Institute Co., Ltd.
SEVEN & i Financial Center Co., Ltd.
We are expanding the community-based chain of
stores by increasing the number of operating areas.
Opening date of stores in each prefecture
Four Fundamental Rules
We have set hard-and-fast rules —
called the "Four Fundamental
Rules" — to attract customers over
the long term, and are implementing them incessantly.
Product Assortment
Friendly Service
Freshness
Cleanliness
Our stores carefully modify their product assortments
to reflect the time of day, weather, community events
and other factors in order to best meet our
customers' needs.
We provide optimal customer service by putting
ourselves in our customers' shoes and greeting every
customer, serving them with a smile, helping them
find the products they are looking for, and more.
Our stores always carry fresh products so that
customers can shop at any time with a sense of
reassurance about the food they are purchasing.
Our stores are kept clean and tidy so that customers
can always shop in comfort and quickly and easily
find what they want.
1974
1975
1978
1979
1981
1982
2
May
June
September
October
April
October
May
February
April
May
August
December
May
Tokyo
Kanagawa
Fukushima
Saitama
Nagano
Chiba
Hokkaido
Tochigi
Fukuoka
Shizuoka
Ibaraki
Gunma
Miyagi
1982
1983
1986
1987
1991
1993
1995
1996
1999
August
October
April
September
May
June
March
March
March
April
November
March
July
Hiroshima
Saga
Yamanashi
Yamaguchi
Niigata
Kumamoto
Shiga
Kyoto
Osaka
Okayama
Hyogo
Miyazaki
Yamagata
2000
2001
2002
2005
2006
2009
March
October
June
July
July
July
November
February
January
January
February
December
Nagasaki
Iwate
Oita
Wakayama
Nara
Aichi
Gifu
Mie
Toyama
Fukui
Shimane
Ishikawa
3
Seven-Eleven Business
Global network
Approximately 38,000 Stores in 16 Countries and Regions Worldwide
We aim to establish a "world-class brand" with business infrastructure created in Japan
Licensees around the world get
together to promote globalization of
Seven-Eleven
A strategy has been launched to strengthen management of Seven-Eleven stores around the world
by utilizing the business infrastructure cultivated by Seven-Eleven Japan.
Norway
Denmark
Sweden
Denmark
Sweden
177
Norway
191
Japan
1,680
China
(Among them, 93 are in Beijing and
Tianjin, and 32 are in Shanghai)
126
Canada
457
United States
Japan
South Korea
6,547
12,771
Thailand
5,409
Taiwan
Malaysia
1,115
Philippines
1,180
4,735
397
Hawaii
Singapore
493
Indonesia
5
In November 2009, our first store in
Indonesia and twelfth store in Asia were
opened.
2,282
Mexico
Thailand
Following last year's meeting, the "Licensees Leadership
Summit" was held again this year in Tokyo to provide a forum
for information exchange and discussion for licensees from various countries and regions around the world. This 2010 meeting
confirmed the policy that Seven-Eleven Japan's know-how
related to "product development", "store facilities", "store management" and "information/distribution systems" would be
shared among licensees as business infrastructure to encourage
their continued growth.
United States
55
Malaysia
Australia
Singapore
Indonesia
4
469
Hawaii
Taiwan
Philippines
China
South Korea
Australia
Canada
Mexico
(As of the end of March 2010 / Number of stores in Japan, Beijing,
Tianjin and Shanghai is as of the end of June)
PT. Modern Putra Indonesia, with whom the area license
agreement was concluded in April 2009, opened the first store in
Jakarta, the capital of Indonesia, in November. The Group
promoted opening of the stores primarily in business districts,
and five stores are now running as of the end of March 2010.
These stores are commanding attention due to their modern
facilities and high-quality fast food products.
5
Seven-Eleven Business
Franchisees system
Clear Division of Roles between Franchisees and Headquarters
Joint Business for Co-existence and Co-prosperity
We prepare a comprehensive support system to enable franchisees to concentrate on store operation and sales.
This franchise system is based on the clear division of roles and a highly transparent accounting system.
Roles are clearly
concept of equal
divided based on the
partnership.
Joint B usiness
Franchisees
Headquarters
Concentrate on Store Operation and Sales
Supporting Store Operation
Management of Store Staff
Management of Products
(Recruitment, education and human
resource management, etc)
(Order placement, sales promotion, etc)
Management of Financial Figures
The Seven-Eleven Systems
that Support the Basis of a
Mutual Trust Relationship
6
Store Operation Consulting Services
(Sales and store operation
management, etc)
Gross Profit
Splitting Method
A system in which gross profit on sales (which is the remaining balance after deducting Cost of Goods Sold*1 from Sales
Amount) of a store is split between the franchisee and Headquarters according to a pre-defined percentage.
*1 Cost of Goods Sold = Net Cost of Goods Sold, which is the
remaining balance after deducting Merchandise Shortage/Writeoff and Rebate from Gross Cost of Sales
P8
Information System Services
P24
Product Development and
Product Information Services
P10
Advertising/Promotion Activities
P30
Leasing of Sales Equipment
P21
Accounting/Bookkeeping Services
P30
Distribution System Services
P22
Open Account
System
A settlement/financing system designed to
enable franchisees to start their business even
with a small amount of funds and to operate it
stably.
Guaranteed
Minimum
Gross Income
System
A system to guarantee franchisees a certain
amount of Franchisee's Gross Income*2.
*2 Franchisee's Gross Income = Income, which is
the remaining balance after deducting SevenEleven charges from gross profit on sales
7
Seven-Eleven Business
Store operation advice
On-target advice and latest information are
directly provided via Operation Field Counselors (OFC)
Creating community-based stores that accommodate
the characteristics of the trading area and that meet
customers' needs
An exclusive OFC (Operation Field Counselor) visits franchisees under his charge.
The OFC provides the latest information and finely-tuned advice about sales methods
and other relevant issues.
Franchisees' originality and ingenuity are reflected in the product assortment and
design of the sales floor
Direct Communication
between Franchisees and OFC
An OFC visits each of his assigned stores at least twice a week
Thought Process of
Order Placement
Sales Methods/Product Display/
Serving Customers
In-Store Infrastructure
Development
Information Utilization Methods
I usually place a product that was requested by a
customer on the shelf at least once. As a result, the
refrigeration case of my store is filled with a variety
of goods such as bean curds, deep-fried bean curds
and eggs. I try different ways to select products by,
for example, listening to customers' opinions.
Tokyo
Katsushika Mizumoto
3-chome store
My store sets the store's own "Basic products"
from among daily products such as onigiri (rice
balls) and various breads so that we can carefully
observe how their sales are trending. Keeping
products in stock helps customers visit us with a
sense of assurance. And it also makes me more
confident in my ordering quantities."
Hyogo
Amagasaki Kema
7-chome store
Owner
Mr. Kaoru Adachi
After joining Seven-Eleven, I was surprised first
of all by the tasty bento (boxed meals) and delicatessen. But we cannot rely only on the attractiveness of
our products. We have to strive to get the most out of
our store by using our ingenuity to select products and
design a sales floor that appeals to customers, as well
as speaking to customers and offering taste testing.
Kumamoto
Hikawa Miyahara
store
I have extended the product assortment for daily
use as well as liquors for which customers have
usually decided what brand and how much they will
buy before visiting my store. The greater the number
of customers, the greater the frequency of impulse
buys. In this way, sales of daily products are increasing. Thanks to the attempt, I could turn around a
steady decrease in customers over the past eight years
and transform it in double-digit growth.
Hokkaido
Kami Shihoro-cho
store
Owner
Mr. Hideki Noda
Trading Area Survey Methods
Headquarters
Financial Figure Analysis and Others
Franchisees
Zone meeting/District
Office meeting
Japan is divided into 15 zones with
meetings held in each zone.
Furthermore, each zone is divided
into areas, and District Office
meetings are held by each area for
the purpose of exchanging regional
information.
Verification of sales results
Information sharing
FC meeting
(General meeting)
This meeting is held on a bi-weekly
basis with approximately 1,750
OFCs attending nationwide. Direct
communication among the OFCs
allows them to share the latest
information.
Managers' Meeting
8
Serving customers/Sales
OFCs provide the latest information to
franchisees to support them in managing their stores. In addition, information
is also shared with employees through
store meetings.
Owner
Mr. Yuji Kitayama
Owner
Mr. Masatoshi
Matsuoka
Trade shows are held twice a year
Headquarters holds a trade show twice a year at 10
different venues across the country. Through these trade
shows, we introduce new products to franchisees, and we
also present various proposals including how to offer
services to customers, how to serve them, and how to
display products more efficiently.
Product display
Order placement
9
Products and Services to respond to Changing Needs
Original products
Original Products only from Seven-Eleven
Attractive Products are Motivating Force for Attracting Customers
To support the daily diets of our customers,
we are mindful not just about taste but also safety and reliability.
Know-how of specialized staff from various companies is utilized
Seven-Eleven's "Team MD"
In Team MD merchandising (for product development), domestic and
overseas manufacturers, business partners and distribution companies in
various sectors work together, with our Headquarters at the core, to
improve service beyond the company's boundaries. Specialists with high-
level technologies in each field introduce the latest product information and
know-how, and propose ideas for developing original products capable of
responding to customers' needs.
<Original Product Development Steps>
Team MD (Merchandising)
Manufacturing, distribution and sales
Establishment of production system
Test sales, tasting by
directors and officers
Vendors
Consideration/determination of
product specifications/
manufacturing process
Manufacturers
Tasting by team members and
evaluation by selected
members of the public
(Product developers)
Hot snacks
Evaluation/advice from
specialists/chefs
Chilled bento (chilled boxed meals)
MD at
Headquarters
Material
manufacturers
Product development meetings
with business partners
Raw ingredient
manufacturers
Market research
Domestic and overseas manufacturers, business partners and distribution
companies work together as a team to share information to develop highquality original products.
Centralized control of production history conducted at various
steps covers raw ingredients to finished products
Efforts focused on ensuring safety and reliability
Every raw ingredient used for preparing original products including
bento (boxed meals) and other entrees is centrally controlled. Regarding
materials used as raw ingredients, we maintain precise records including
their production histories, which materials are used for what menus and in
what districts they are used. Furthermore, data relevant to manufacturers of
raw ingredients as well as presence/absence of allergic substances and food
additives are input into the database.
How Production History of Raw Ingredients is Managed
Seven-Meal Service
(Meal delivery service)
Frozen food products from
"Seven Premium"
Check production history from raw ingredient
Check production history from sales areas
Check production history from products
Raw Ingredient Management Data
Distribution Management Data
Recipe Master
Data on each raw ingredient such as
country of origin, factory and additives
Region-based data on raw ingredients,
quantity used and duration of use, etc
(Menu Recipe Management Data)
Data on raw ingredients used in each product
Meal solution
Supports customers' food life and shop floor attractiveness
Local shopping areas near residential districts are increasingly shrinking
and even disappearing. Against such a trend, Seven-Eleven offers a "meal
solution" to senior citizens, single-person and double-income households
from having to engage in time-consuming and potentially troublesome meal
preparations. Frozen food products, chilled bento (chilled boxed meals) and
in-store cooked hot snacks that can be eaten anywhere and any time, as well
10
as the Seven-Meal Service that delivers meals and sets of ingredients doorto-door have all been well received by customers. The meal solution service
operates from locations near to our customers in order to conveniently
support their food life with tasty food products. Efforts to develop and offer
Seven-Eleven's original food products to make sales floors more attractive.
Raw
Ingredient
Management
Data
Recipe
Master
Distribution
Management
Data
Information
Information
11
Products and Services to respond to Changing Needs
Seven Premium
Overwhelming Support for "Seven Premium"
Global Development is also Promoted
Hot sellers created thanks to their taste, quality, safety/reliability and price
We will nurture them to become world-class brands
Global MD (Merchandising)
Accomplishment of our group force worldwide
Yosemite Road wine, for which marketing was launched in November
2009, was born from our first global-scale merchandising efforts and jointly
promoted by six group companies in Japan including Seven-Eleven and the
U.S.-based Seven-Eleven Inc. For this large project, we also teamed up
with "The Wine Group (TWG)" of the U.S., which is the world's biggest
retailer of top-class wines, and the Japanese wine maker "Mercian", to
coordinate product development - from securing raw materials to distribution - between Japan and the U.S. This unique product development system
allows us to deliver high-quality products at reasonable prices based on the
combined power of the group.
Seven Premium
Dining table scene
Sales also launched in China
Sales of this wine were launched at
Seven-Eleven Beijing and other Seven &
i Group stores in China in February
2010, and are enjoying brisk sales.
Seven Premium
Delicatessen
Delivering tastes of community-based food culture
Cooperation with local governments nationwide is also promoted
Seasoning Packaging Centers that are located in eight locations nationwide,
develop region-limited products that suit the taste preferences of each community. These products are highly supported by customers in each community.
In addition, we promote the conclusion of Regional Revitalization Comprehensive Partnership Agreements and other agreements between local governments across Japan to make contributions to community development by implementing the local production for local consumption movement and exploring
new business opportunities for unique products in each community.
Seven Premium
Household products
Comprehensive
Partnership Agreement
was concluded with
27
7
prefectures
and
cities
(As of the end of June, 2010)
■ Local authorities with which
the Agreement is concluded
■ Prefectures in which our
stores have been opened
■ Prefectures in which our
stores have not yet been
opened
Seven Premium
Dining table scene
Every product from delicatessen and frozen food products to household products
helps increase the number of new customers URL http://www.7premium.jp/
Our private "Seven Premium" brand was launched in 2007. Each "Seven
Premium" brand product is jointly developed with leading manufacturers in
respective sectors. Seven Meal is favored by customers because of the
products' taste and quality that is equal to or above that of similar national
brand products, as well as for their reasonable prices. Seven Meal is also
supported by senior citizens and housewives due to the fully-fledged product selection ranging from delicatessen, entrees and frozen food products,
which are popular for their taste, price and volume, to seasonings and
household products. Adding valuable original products to your store will
help increase visit by existing customers and attract new customers.
A fair was held in cooperation with Miyazaki and Miyagi Prefectures
12
Comprehensive Partnership Agreement was concluded with Hyogo Prefecture in April 2010
13
Products and Services to respond to Changing Needs
A Wide Variety of Services available from Multi-functional Copy Machines
Multi-functional Copy Machine's Wide Variety of Services
Offer Additional "Close and Convenient" Service to Customers
A variety of services ranging from provision of sports game tickets to the ability to make a copy
of one's residence certificate will attract customers to your store more frequently
Issuing of certificates through cooperation
with administrative service
Tokyo's Shibuya Ku and Mitaka, Ichikawa in Chiba prefecture, and
Soma in Fukushima prefecture have launched a service that permits issuing
of copies of residence and seal registration certificates via the multifunctional copy machine. The number of local authorities participating in
this system is expected to increase sequentially.
Launch ceremony for administrative service
Scope of ticketing is expanded in the movies,
professional baseball games and events
A customer using the multi-functional copy machine
Sports tickets
The scope of tickets handled by the multi-functional copy machine has
been expanded to cover professional baseball and soccer games held across
Japan to a variety of exhibitions and lecture meetings that are held in various parts of the country, not to mention newly-released movies. In 2010, we
exclusively sold "Giants Support Seats" of the Players' Day through this
system. The business/capital alliance with Ticket PIA will make it possible
for customers to buy Ticket PIA tickets directly from the multi-functional
copy machine (launching around autumn 2010). In areas around Tokyo, we
started selling tickets for the "Pokekaru Club", a diverse types of hands-on
one-day events. Reservations for events such as "Let's go to the popular site
in the city core, the Diet!" can also be made from the multi-functional copy
machine.
Giants support seats
Seven & i Holdings has closed the business and
capital alliance with PIA Corporation. and made
a capital investment in Tower Records Japan Inc.
We will extend our business in the entertainment
sector by promoting sales of tickets and eventrelated businesses.
Printing of photos taken with digital camera
Pokekaru Club
Various new services made available with this single machine
Seven-Eleven's multi-functional copy machine
The multi-functional copy machine offers highly functional services
including high-quality color copying, fax transmission, clear and crisp
printing of photos taken with digital cameras, and conversion of images to
digital data through scanning. These services are becoming more convenient to use as evidenced by the acceptance of "nanaco" electronic money
for payment. When connected to a network, tickets for expressway buses
14
are available in addition to tickets for concerts and sports games. The various services provided by the multi-functional copy machine increase the
chances of contact with customers of different age levels, and make them
visit your store more frequently.
Multi-functional copy machine offers these services
[Seven ticket]
Allows purchasing of tickets for professional baseball and J-league games
and theatrical dramas.
[Administrative services] (In coordination with local authorities)
Customers are also able to obtain a copy of their residence certificates
and seal registration certificates.
[Expressway bus tickets]
In addition to purchasing tickets for reserved seats, customers can
also purchase tickets directly from the multi-functional copy machine.
Free-of-charge brochure "7 PIA"
We offer more convenient services to customers
● Purchasing bike liability insurance (store counter, multi-functional copy machine)
● Application for door-to-door parcel service (store counter)
● Reservation for specially-prepared bento (boxed meals)
(store counter and Seven-Eleven Net)
● Midsummer gifts/year-end gifts/congratulatory or condolence gifts
(store counter and Seven-Eleven Net)
● Reservations for seasonal products (store counter and Seven-Eleven Net)
15
Products and Services to respond to Changing Needs
IT and Media
We Develop New "Ways of Selling" that Combine Stores,
Internet and Media
Customized selection created with pride from unique products across Japan and from TV programs
We not only develop products but also show how to sell them
TV programs introduce products born from collaboration
with entertainers Nittele Seven creates hot sellers
Through joint capital investment with Nippon Television Network Corporation and
Dentsu, Seven & i Group founded "Nittele Seven" to establish collaborations between TV
programs and retail businesses. We developed a new method of selling products in which
Seven-Eleven stores sell products that are introduced on the "Megami no Marche
(Goddess's Market)" shopping program produced by Nittele Seven. This approach is
producing a steady stream of hot-selling sweets and bento
(boxed meals). Entertainers and famous chefs participate in the
product planning stage. They contribute to sales thanks to their
public notoriety and news hooks.
URL http://www.ntv7.jp/
Seven-Eleven Net
A wide selection of popular sake brands
Product produced via a
collaboration with Gucci Yuzo
TV program
Web page
Receiving at store (no charge for the service)
Seven-Eleven Net
A product born through collaboration with Tsutomu Sekine
TV program
introduces
product
information
Product
information is
offered over
the Internet
Introduced
products are
sold at
actual stores
Seven-Eleven
Ito-Yokado
Seven Net Shopping
Ito-Yokado Net Super Market
Sold on the
Internet
We enhance the royalty of your stores through collaborating
with group companies including Seven Net Shopping
URL http://www.7netshopping.jp/
Expanding product assortment on the Internet
Seven-Eleven Net URL http://www.711net.jp/
Seven-Eleven Net sells sake, food products, hobby-related products and
gift items across Japan over the Internet without being restricted by the
shop floor space and hands them to customers at Seven-Eleven stores.
Since payments can be made at the store, customers who are disinclined to
make credit-card transactions on the Web can order the products they wish
to purchase safely. This is a major selling point for customers. In addition,
Seven-Eleven Net functions as an "Order-taker" for the stores' neighboring
customers by selling products and announcing seasonal layaways, thereby
enhancing existential value of your outlet as a "close and convenient" store.
Seven-Eleven actively engages in utilizing payment and distribution
systems for other group companies. Customers who purchased products
through "Seven Net Shopping", which is the group's general online shopping site that opened in December 2009, and Sogo & Seibu's cosmetics
shopping site "ikeseikirei", can pay for and receive the products at the store.
Thanks to the above system, Seven-Eleven outlets are being recognized
more than ever as "close and convenient" stores and, as a result, contributing to the increasing number of customers.
Seven Net Shopping
16
17
Products and Services to respond to Changing Needs
Payment service
Close and Convenient Teller Window Offers a Variety
of Payment Functions
Seven-Eleven stores offer well-structured financial services including ATM services,
electronic money, bill payment services and credit-card transactions.
More than 10 million cards issued
Electronic money "nanaco"
Since the "nanaco" service was launched in April 2007, more than 10
million "nanaco" electronic money cards have been issued. nanaco has
now become an established payment system among our customers due to
advantages such as the way the card prevents customers from having to
carry small change, ease of payment at the cash register, and the ability
of customers to accumulate points for later use. One of the reasons
nanaco is popular is that customers are able to charge and check the
balance of their nanaco accounts at Seven Bank's ATMs. Stores where
nanaco cards can be used are not limited to group companies such as
Seven-Eleven, Ito-Yokado and Denny's, but also include an expanding
range of other stores outside the group.
nanaco card
nanaco
cell-phone website
Number of "nanaco" cards issued and status of utilization
- Monthly use frequency
Approximately 45 million transactions
Payment with credit cards
such as "IY Card" is now available
(As of the end of May 2010)
From June 2010, payment by "IY Card" and "JCB Card" has been made available at every SevenEleven store. Customers' method of payment have been further expanded. Regarding other major
globally-used credit cards, we will begin necessary preparations to enable them to be used at our stores
in the near future.
Payable 24 hours a day, 365 days a year
Bill Payment Services
Seven Bank
Bill payment services for utility charges, insurance fees, mail order
products, etc. are frequently used by our customers. The number of
payments handled at stores has been increasing year after year since the
service, which conveniently allows customers to make payments 24 hours a
day, 365 days a year, was started. In 2009, the number of payments handled
reached 329,700,000 with a corresponding value of approximately ¥3,072.7
Number of ATMs installed
14,626
Number of affiliated
financial institutions
563 companies
(As of the end of May, 2010)
Collect payments for approx.
Bill Payment Services
ATM services
320 companies
billion. In addition, approximately 320 companies and public organizations
have payment collection agreements with us. Bill payment services such as
this one increases the frequency of customer store visits and also contributes to expansion of revenues.
Trends in Number of Bill Payment Services Accepted, and Amount Handled
350,000
323,966
300,000
250,000
Seven Bank's "Everyone's ATM" accepts credit cards issued by more than
560 financial institutions across Japan
18
Bank, we started the "Personal loan service" in January 2010. We are
extending this service as a way to further connect closely with customers'
everyday lives, and aim to soon begin providing an "Overseas remittance
service", to respond to the needs of the increasing number of foreign laborers who send money to their home countries.
323,97
195,525
200,000
166,994
150,000
100,000
69,501
50,000
Collect
3,072.7 billion
yen per year
Number
of
transactions
accepted
503,053
(Unit: Thousands)
98
641,031
990,130
813,157
3,000,000
2,500,000
2,383,539
2,000,000
1,681,775
125,712
86,148
2,950,068
2,009,554
144,429
104,942
3,500,000
3,072,749
2,734,184
226,995
Collect
million
payments per year
4,000,000
308,546
290,474
259,127
One of our customers' motivations for visiting our stores is Seven Bank's
ATM services. In addition to the large number of affiliated financial institutions, our ATM services are highly rated for their convenience since our
ATMs are installed in public squares and other locations where large numbers of people gather such as group company stores, airports, railway
stations, and expressway service areas. By utilizing the accounts of Seven
(Use per day: Approximately 1.45 million
transactions)
63,056
- Number of stores nanaco
can be used in
(Breakdown: Seven-Eleven: 12,746 stores, Ito-Yokado:
163 stores, Seven & i Food Systems: 499 stores, Stores outside
the group: 49,648)
Electronic money "nanaco"
(Breakdown: Cards: Approximately 9.86 million,
Mobile: Approximately 1.64 million)
Approximately 11.5 million
- Number of cards issued
1,500,000
1,390,474
1,154,119
1,000,000
500,000
99
00
01
02
03
04
05
06
Note: The figures in 2001 and later include bill payment services for online shopping.
07
08
09
(Fiscal Year)
Amount
handled
(Unit: Million yen)
19
Concept and process of our Business Base
Product Assortment and How to Build Sales Floor
A Basic Concept of Providing an Attractive Product
Assortment that Offers a New Discovery Experience
for Customers Every Time They Visit our Stores
The "store" we create must carry a product
assortment suited to the needs of the trading area
We were among the first to get rid of
preservatives and artificial colorings in
order to deliver safe and reliable food products.
The number of products recommended by Headquarters is approximately 4,000. Among them, our original products play a key role in attracting customers due to their taste, quality and safety. In addition, stores must
establish a system that is capable of carrying new products on which manufacturers have focused their efforts, as well as products that are currently in
the spotlight. These efforts support creation of stores where customers can
get "what they want and as much as they want."
Since August 2001, Seven-Eleven has completely eliminated
preservatives and artificial colorings from our original products,
such as onigiri (rice ball), bento (boxed meals). We realized the
above through the thorough hygiene and temperature control at
dedicated plants and through our unique distribution systems.
Products
recommended by
Headquarters
Products
carried at a store
New products
introduced
per week
Approximately
Approximately
Approximately
Approximately
4,000 items
2,500 items
100 items
70%
Creating Product Displays and Sales Floors that
are Attractive to Customers
Seven-Eleven Utilized its Unique Know-How
Psychology-based layout : easier to find,
select and purchase displays and sales floor
In order to attract the attention of customers and have them purchase
products, stores must not only carry an attractive range of products but also
ensure the sales floor is attractive. Product display racks and refrigeration
units in Seven-Eleven stores are designed to facilitate display work and
maintenance, and, needless to say, to make it easy for customers to find and
purchase the products they want. According to the advice, product display
methods and examples of sales approaches provided by OFCs, our store
layouts are designed to ensure the unique display of products is appealing
to customers.
Products
replaced annually
Hot snack case
Non-food products
Magazines, cosmetics, commodities,
game software, etc.
Processed food products
Soft drinks, snacks, instant noodles,
retort-packed food products, etc.
Processed food
products
Non-food
products
32.6%
Total sales amount
of all chain stores
28.3%
Ice cream case
Snack gondola
Magazine rack
Open-case refrigerator for rice and chilled products
¥2,784.9 billion
(Fiscal 2009)
Daily delivered
food products
12.1%
Daily delivered food products
20
Milk, dairy items, desserts,
fresh pastries, etc.
Fast food
27.0%
Fast food
Rice products, noodles, sandwiches, salad, entree,
oden (Japanese style hot pot), etc.
21
Concept and Process of our Business Base
Distribution Systems and Dominant Strategy
Seven-Eleven Stores Deliver "Freshness", "Taste"
and "Safety" Taking into Account the Environmental
Impact, too.
Combined distribution system by temperature zones
Products are delivered from production sites to the store at optimum temperatures
Seven-Eleven sets up combined distribution centers by product category
and temperature zone in each area. Each product is kept at an optimum
controlled temperature at every stage from production to delivery to the
store. This unique distribution system maintains "freshness", "good taste"
This strategy brings many advantages to both
customers and store management
and "reliability" of our products. This combined distribution system by temperature zone delivers freshly-made food products such as bento (boxed
meals), entree and sandwiches to stores faster.
Seven-Eleven's Distribution System (Combined Distribution System by Temperature Zones)
Chilled product combined distribution center
Rice product combined distribution center
Bento (boxed meals)
Onigiri (rice ball)
Fresh pastry, etc
Sandwiches
Salads and entrée
Noodles
Milk, dairy items, etc
Kept at 5˚C
Kept at 20˚C
Three times a day
Three times a day
High-Density Store Opening Strategy Enhances
Response Capabilities to Community Needs
The high-density store opening strategy = Dominant strategy that opens
many stores in a certain area in a concentrated manner is an important part
of Seven-Eleven's strategy. After a store is opened, we offer detailed management support to enhance the quality of this Seven-Eleven store and to
establish it as the "No. 1 community brand." A high density of stores is also
advantageous to customers. Since the high-density store opening strategy
allows installation of an exclusive bento (boxed meals)/entree commissary
near stores, customers are able to buy fresh products at any time. In addition, customers can take advantage of various services such as the ATM and
multi-functional copy machine at nearer stores, increasing the convenience
of their daily lives. This new store opening system realizes a "close and
convenient" store for customers.
Dominant Strategy contributes to Store Management
Increased awareness of chain stores
More frequent visits to stores by customers
Improved advertising / sales promotion efficiency
Three to seven
times a week
Improved distribution efficiency
Improved store operation consulting service quality
Seven times a week
Kept at -20˚C
Six times a week
Kept at
ambient
temperature
Ambient temperature consolidated
distribution Delivery Center
Frozen product combined distribution center
Soft drinks
Instant noodles
Alcoholic beverages
General merchandise, etc
Magazine distribution center
Ice cream
Frozen food products
Ice cubes, etc
Magazines/books
Combined distribution has succeeded in
substantially reducing the number of
delivery trucks used
Seven-Eleven has been working hard to realize combined distribution
from the time of its foundation when it was expected that the manufacturer
delivered the product. Adoption of combined delivery has succeeded in
substantially reducing the number of delivery trucks used from 70 trucks
per day, per store to approximately 9. We deliberately plan the delivery
routes so that more items can be transported with a smaller number of
trucks. In this way, this system is not only contributing to curbing CO2
emissions, but also helping reducing noise.
Cold chain (low-temperature distribution network)
to maintain freshness of fresh vegetables
The "Cold chain" system maintains the freshness of vegetables used
for sandwiches and salads. Harvested vegetables are stored at low
temperature on site and transported by delivery trucks under strict
temperature-controlled conditions. They are then delivered to stores
via the similarly temperature-controlled sorting center and commissary. Consistent temperature control from the farm to the store maintains vegetables' freshness and quality.
30˚C
Flexible style of shop opening suited to the
location and customers' characteristics
We are developing various types of stores that are better suited to their
location, environment and demands such as when, for instance, opening a
store in a large building such as a university, hospital, hotel, public office,
or for lease. Premises - and environment-related characteristics of the location a store is opened in are reflected in store design and facilities used, not
to mention the product selection.
Normal distribution
method
Number of delivery vehicles per store per day
Appropriate
temperature
(Number of trucks)
100
Seven-Eleven
Large building
University campus
Hospital
Public office
70
0˚C
Production site
50
34
12
10
’90
’00
9
Chilled/Refrigerated vehicle
Production
site
Chilled vehicle
Low-temperature
processing center
Chilled vehicle
Commissary
Store
0
’74
22
’80
’09 (Fiscal Year)
Kept at low temperature
after harvesting
Sorted for delivery to each
commissary
Processed for sandwiches
and salads, etc
Gas station
23
Concept and Process of our Business Base
Information system
Creating a Store Supported by Customers Following
the Steps of "Hypothesis", "Ordering" and "Verification"
Enhance the accuracy of orders
you place by sharing information with the
staff in charge of each sales floor.
Item-by-item management is the basic of store operation
Utilize world-class network to support franchisee
Sales of products vary depending on various factors including temperature, weather, community events, and advertising and sales promotion
activities conducted in a way that is timed with the introduction of a new
product. The products that sell well vary depending on the day of the week
and time zone. You must recognize sales trends of the products on a single
item basis, generate hypotheses based on these trends, place orders, and
then confirm and verify sales. Item-by-item management refers to the
repeating of the above cycles in order to identify the product selection that
are being demanded by customers.
Sharing information via staff meetings will enable the staff in charge of
each sales floor to generate hypotheses before placing orders, and to verify
the results. In this way, the store as a whole will be able to respond to the
needs of customers.
One of the world's largest information networks
Store
Commu
nication
SC (Store Computer)
OFCs' mobile PCs
District Office (D/O)
OFCs can provide timely advice by
referencing order/sales data of
assigned franchisee stores
displayed on screen.
D/O office provides accounting/
bookkeeping services such as
creation of databases of stores'
various accounting books.
Various kinds of information are displayed in an easy-to-understand format using
animated and still images. Such information includes financial data, sales information
for each time zone, target products of promotional TV commercials, information
about new products to be released in the near future, regional weather and event
information, and examples of product display.
Network
Weather forecast screen
Data related to sales and price changes
Sales/event calendar
Data related to delivery, inspection and product display
Headquarters
Franchisees' store operation and sales promotion activities by
stores are supported through accumulation, management and
analysis of information.
Network
Product information screen
Ordering/Sales data
Network
24
Network
POS register
Scanner Terminal (ST)
Graphic Order Terminal (GOT)
At the instant a payment is made at the
register, sales data is collected and transmitted to Headquarters through the SC. Data is
accumulated, and used for product selection
and sales promotion activities. This system
also supports electronic money "nanaco".
ST is used for check-in, registration of produ c t d i s p l a y p o s i t i o n s , a n d f re s h n e s s
management. It retrieves various data into
the SC quickly to support accurate and
efficient product management.
GOT allows confirmation of sales data, product information, weather and event information to enable effective ordering for the sales
floor.
Distri
bution
Network
Combined Distribution
Center (CDC)
Manufacturers/Business
partners
The combined distribution system
by temperature zones allows
scheduled delivery of products
while also maintaining their freshness.
Deal with orders from stores by
re c e i v i n g o rd e r s o n l i n e a n d
manufacture/ship the products.
Distribution
25
Concept and Process of our Business Base
CSR (Corporate Social Responsibility)
SEVEN-ELEVEN FOUNDATION
We Work Together with Communities to Solve Social
Issues and Behave as a Reliable and Sincere Company
We work to reduce greenhouse gas emissions
by promoting energy-saving measures at stores.
In order to respond to the serious global issue of global warming by
reducing emissions of greenhouse gases such as CO2 , Seven-Eleven is
promoting the opening of new environment-conscious stores by, for
instance, employing LEDs for store signs and sign poles, using highly
efficient in-store lighting, and floor materials with high reflectance ratio,
An example of an environment-friendly store
Seven-Eleven Memorial Foundation was inaugurated to
extend the circle of more sustainable social action
and saving energy used for hot-water supply equipment.
The latest type of environment-conscious stores are aimed at reducing
power consumption by 30% or more compared with existing stores by
installing solar power generation panels on roof tops and skylights as well
as using LEDs for in-store lighting.
LEDs for in-store lighting
When Seven-Eleven marked its 20th anniversary in 1993, Headquarters
set up "Seven-Eleven Midori no Kikin (Green Foundation)" along with the
franchisees to make environment-oriented social contribution. Since then
we have been supporting citizens' environmental groups and working
toward environmental protection and preservation based on contributions
from customers and donations from Headquarters.
It was turned into a corporate entity "Seven-Eleven Memorial Foundation" in March 2010 to extend the circle of activities.
Forest restoration activity by Lake Shikotsu in Hokkaido
Operation of "Kuju Furusato Shizen Gakko
(Kuju Home Eco-Institute)" in Oita
In order to restore the forests by Lake Shikotsu that were severely damaged by a
typhoon in 2004, we launched the "Executive Committee for Restoration of
Typhoon-damaged Forests by Lake Shikotsu." Citizens, as "foster parents", plant trees
on the 100-hectare plot.
In addition to the nature study held in Iida Plateau for primary and junior high school
students, this institute is working together with community members to preserve and
protect the natural environment and to make this area livable for ibises.
Safety Station Activities and Efforts to
Fulfill our Social Responsibility
Awarded the Energy Conservation Center
Chairman's Prize in "Energy Conservation
Award" held in 2009 by the Ministry of Economy,
Trade and Industry
Seven-Eleven received this award for its positive efforts to promote
energy-saving measures at its franchise stores.
Contributing to beautification of towns
as a community member
Owners of Seven-Eleven franchise stores, employees and Seven & i
Group companies jointly conduct simultaneous nationwide littercleaning activities in the districts adjacent to our offices and stores on a
bi-annual basis.
Simultaneous Nationwide Litter-Cleaning Activity
26
Safety Station Activities refer to the utilization of Seven-Eleven stores,
that are open 24 hours a day, 365 days a year, as safety and security bases
for the community. Cooperating with police stations, police boxes, the
Japan Traffic Safety Association and fire stations, we are promoting activi-
ties to create safe and secure communities. In addition, linking with juvenile support centers and PTAs, we are engaged in contributing to the sound
upbringing of youth.
Crime/Disaster
Prevention Measures
● Strengthening voluntary crime prevention system against
robberies and shoplifting
● Calling 110 (Police) or 119 (Fire Dept./ Ambulance) in an
emergency when a disaster, accident or medical crisis occurs
Safety Measures
● Functioning as an emergency shelter for women and children
● Extending nursing care to elderly and physically disabled
people and make contacts for such people
● Transmitting and providing safety information to people in the
community
Strengthening the Efforts
to Raise Morally Strong
Young People
● Never selling alcohol or cigarettes to minors
● Never selling adult-oriented magazines to children under 18 or
allowing them to read such magazines
● Help preventing juvenile delinquency by preventing juveniles
from engaging in acts outside stores that may be a nuisance to
neighbors
Warning on the POS register screen
Safety Station Poster
Prevention of sale of adult-oriented
magazines to those under the age of 18
27
From the Franchise Agreement to Store Opening
Based on Thorough Surveys and Close Communication,
We Carefully Support You up to Opening Day
Explanation, Research and Screen
Make a Decision
Build a Store
Type A
1. Visiting a potential owner
2. Researching locations, trading
areas and the market
3. Introducing the system
4. Internal screening
5. Explanation of the Franchise
Agreement details
6. Consideration and
decision-making by owner
7. Signing of franchise
agreement
8. Store layout and design
The Recruit Field Counselor (RFC) explains to the potential owners about what
is needed to become a Seven-Eleven franchisee, consults with them, and answers
any questions they have.
The RFC conducts multilateral and detailed research on 245 items to determine
whether the location and the trading area
are suitable for opening a franchise store.
The RFC analyzes and studies the collected data from various angles.
The RFC explains in detail about SevenEleven's unique store operation method
and general store management principles
until the potential owners understand all
necessary information.
The RFC receives a financial plan and financial documents etc. and Seven-Eleven
Headquarters analyzes plan details.
RFC explains the agreement item by
item so that the potential owners
know what they have to comply with
as a franchisee. This explanation
covers, for instance, the roles of
owners and Headquarters.
The potential owners carefully consider the details of the agreement
and make a decision as to whether
they will sign the Franchise Agreement.
After having thoroughly considered
the Seven-Eleven system and understood the details of the agreement,
the potential owners make a final decision and conclude the Franchise
Agreement.
The construction and development
department at Headquarters plans
store layout and designs a store that
is easy to use and easy to work in.
After the design has been completed,
the store owners sign the Store Construction Contract Agreement.
Make a Decision
Explanation and Screen
Type C
Common steps for Type A and C
28
Sign the Agreement
Sign the Agreement
1. Participation in an owner
recruiting explanatory meeting
2. Primary interview
3. Visiting of existing stores
4. Explanation of the Franchise
Agreement details
5. Interview with the district manager
6. Checking of the potential properties
for the store
7. In-store experience
8. Signing of franchise
agreement
Seven-Eleven's common franchise
system and mechanism and the profit
calculation method etc. are explained.
At a later date after the meeting, the
person in charge visits and interviews
the potential owners (basically, married
couple).
The potential owners visit an existing Seven-Eleven store owner and
listen to their opinions about operations in order to deepen their understanding.
RFC explains the agreement item by
item so that the potential owners
know what they have to comply with
as a franchisee. This explanation
covers, for instance, the roles of
owners and Headquarters.
The district manager interviews the potential owners to get final confirmation of their
understanding and consent of the married
couple or family with regard to SevenEleven operation.
Headquarters introduces properties that are
considered to be closest to the potential
owners' wishes.
After they check the properties, they select
the one they prefer.
Before beginning to operate a store, the
potential owners work at an existing store
for a short period of time to gain hands-on
experience as owners and to judge whether they have the aptitude required to be a
store owner.
After having thoroughly considered
the Seven-Eleven system, the potential owners sign the Franchise
Agreement.
Training for Owner
Prepare for Store Opening
Ceremony
Congratulations! Store Opening
13. Store opening
9. School training (5 days)
10. In-store training (5 days)
11. Preparations before store opening
12. Turn-key
Easy-to-understand lectures are provided
using textbooks and VTRs that explain
the Seven-Eleven system. Trainees actually operate information devices to learn
how to use them.
Potential owners practice actual everyday operation and learn how to serve
customers at a corporate store in each
district. One trainer is assigned to provide detailed training to 2 to 4 trainees.
Before opening the store, the owner is expected to communicate with employees in order to share the necessary information. The owner then directly visits
neighborhood residents to notify them of the opening of the store.
This refers to the ceremony held the
day before the opening. The owners
are presented with the store key
along with a training completion
certificate.
The owner must be well prepared to welcome customers.
After the store is opened, an Operation Field Counselor (OFC),
who acts as a mediator between
the owners and Headquarters,
will support the franchisees in
every aspect of store operation.
29
Conditions of the Agreement
Corporate Outline of Seven-Eleven Japan Co., Ltd.
Type A
Type C
Operation
style
Independent
business
owner
Independent
business
owner
Agreement
term
Possession
or leasing
of the land/
building
Possessed by
the owner or
leased
15 years
Possessed by
Headquarters
or leased
15 years
Utilities
paid by
Headquarters: 80%
Franchisee: 20%
Headquarters: 80%
Franchisee: 20%
(Breakdown)
Agreement
type
List of Executives
Corporate Outline
List of Agreement Conditions
Deposit upon signing
an agreement income
<1> Training fee
<2> Store opening preparation charge
<3> Investments at store opening
3,075,000 yen*1
<1> 525,000 yen*1
<2> 1,050,000 yen*1
<3> 1,500,000 yen
2,550,000 yen*1
<1> 525,000 yen*1
<2> 525,000 yen*1
<3> 1,500,000 yen
Guaranteed minimum
income
Seven-Eleven Charge
Gross profit on sales*2 x 45%.
(43% for 24-hour operation stores)
● Incentives for stores in operation
for 5 years or longer
(The charge is reduced under a
certain condition.)
Gross profit on sales*2 x slide-charge rate
For 24-hour stores, the
gross profit on sales is
reduced by 2%.
● Incentives granted for stores that
have operated for 5 years or longer
(The charge is reduced under a
certain condition.)
(
(
Franchisee's Gross
Income*3
19 million yen per year for
stores open for 24 hours
16 million yen per
year for non-24
hour stores
)
Seven-Eleven Japan Co., Ltd.
Name:
Seven-Eleven Japan Co., Ltd.
Representative:
Chairman and CEO
)
(
14 million yen per
year for non-24
hour stores
)
President and COO
Ryuichi Isaka
Date of establishment: November 20, 1973
¥17.2 billion
Number of employees: 5,763 people
Results for the period ending February 2010
(Seven-Eleven Japan only)
Total operating revenue
¥535.018 billion
*1 Consumption tax included *2 Refer to page 6 *3 Refer to page 7
∗ The owners will get to know more about details of the agreement when they read through the "Key Points Overview of the Franchise Agreement" and "Agreement".
Operating income
¥156.22 billion
Ordinary income
¥164.445 billion
Breakdown of deposit upon signing an agreement income (For type A)
Net income
<1> Training fee
525,000 yen
(Including 25,000 yen consumption
tax and other charges)
Trainees' expenses for classroom tuition and hands-on training in 10-day training program (including meal expenses and
accommodation fees).
Executive Officer
Chairman and CEO
Managing Executive Officer
City banks
Mitsui Sumitomo, Resona, Mizuho Corporation,
Tokyo-Mitsubishi UFJ
Toshifumi Suzuki
Yasushi Kamata
President and COO
Executive Officer
Ryuichi Isaka
Akira Fukuoka
Regional banks
Hokkaido District / Hokkaido, Hokuyo
Tohoku District / Iwate, Toho, 77 Bank, Yamagata,
Shonai
Kanto, Koshinetsu, Tokai District / Yokohama, Chiba,
Chiba Kogyo, Keiyo, Ashikaga, Joyo, Gunma,
Musashino, Yamanashi Chuo, Hachijuni, Daishi,
Hokuetsu, Shizuoka, Suruga, Juroku
Director
Toshifumi Suzuki
Capital:
Franchisee's Gross
Income*3
17 million yen per year for
stores open for 24 hours
Representative:
Seven-Eleven Loan Partner Banks
¥92.439 billion
Total sales amount of all chain stores in Japan ¥2,784.997 billion
Number of stores (in Japan)
12,753
Hokuriku District / Hokkoku
Kansai District / Kyoto, Shiga, Nanto, Kiyo, Hyakugo,
Minato, Kinki Osaka
Kyushu, Chugoku District / Fukuoka, Nishi-Nippon
City, Saga, Eighteenth Bank, Shinwa, Higo, Oita,
Miyazaki, Yamaguchi, Hiroshima, Momiji, Chugoku
This charge covers various preparatory operations required for opening implemented by Seven-Eleven to prepare the
store for opening by a franchisee. These preparations range from store planning before the agreement to product
display.
<3> Investments at store opening
1,500,000 yen
(Including 25,000 yen consumption
tax and other charges)
The above is the minimum amount to be prepared by the franchisee as the owner's capital to cover part of the costs
products stocked at the time of opening, cash for change, costs for store fixtures, equipment and consumables, and
500,000 yen for franchise guarantee deposits (the franchisee makes payment of the above amount to Seven-Eleven, and
costs beyond the above are procured by Seven-Eleven and financed to the franchisee).
Isamu Hirai
Vice President
Senior Executive Officer
Executive Officer
Kazuki Furuya
Kazuhisa Sato
Director
Managing Executive Officer
Executive Officer
Fumihiko Nagamatsu
Yoh Mitani
Executive Officer
Director
Managing Executive Officer
Masao Eguchi
Executive Officer
Director
Shizuma Noda
Tomio Nishikawa
Executive Officer
Director and Executive Officer
Keiko Fujimoto
Katsuhisa Konuki
Executive Officer
Director and Executive Officer
Others
Chuo Mitsui Trust and Banking, Shokochyukin Bank,
Ichii Shinkin Bank, Fukuoka Hibiki Shinkin Bank
(As of the end of February, 2010)
●
Akio Miyashita
Akira Masuda
Ryoji Sakai
(As of the end of February, 2010)
<2> Store opening preparation charge
1,050,000 yen
(Including 50,000 yen consumption
tax and other charges)
Executive Officer
Executive Officer
Auditor
Akira Ushijima
Auditor
Executive Officer
Hisashi Seki
Fumio Inoue
Auditor
Executive Officer
Norikazu Tsudaka
Yoshio Watanabe
Auditor
(As of the end of May, 2010)
Hisashi Kino
Business Performance and Data
Incentive Charge
The Seven-Eleven charge is reduced according to the set criteria on a monthly basis after a number of days has accumulated up to
five full years of operation beginning from the day the store first opened. This incentive is applicable from the day after the month that
marks the completion of five years.(The actual application begins from the next month of the sixth anniversary of the opening.)
Description of Incentive Charge
1. Standard on daily sales
Average daily sales throughout the year is
¥300,000 or above
The charge is reduced by 1% for the gross
profit on sales
2. Annual gross profit on sales
When ¥50 million or more and below ¥70 million
The charge is reduced by 1% for the gross
profit on sales
When ¥70 million or more
The charge is reduced by 2% for the gross
profit on sales
∗ The incentive charge is computed and allocated on a monthly basis.
When the sales on an annual basis is achieved, the charge applied to the unachieved month is
adjusted (reduced) for and refunded in the 13th month.
Even if sales on an annual basis were not achieved, the charge is applied as is to the month
concerned, and adjustment and refunding of the charge in the 13th month are not carried out.
∗ The incentive for a consigned management store becomes eligible after five full years have
elapsed from the date it became a Type C store and met the criteria, because the period of the
consignment is not included in the number of operating days.
● Frequency of costomer visits
● Total sales amount of all chain stores in Japan
27,625 27,849
(Hundred million yen)
25,000
20,000
15,000
14,771
16,090
17,409
18,481
19,639
20,466 21,140
22,132
23,431 24,408
Customers who visit at
least twice a week
24,987 25,335 25,743
Others
Daily
17%
16%
2 to 3 times
a month
9%
Four to five
times a week
13%
Once a week
10,000
Two to three
times a week
15%
Backup Services and Systems for Franchisees
Advertising Activities
Incentive System for Multi-store Operation
● Advertising expenses for sales promotions (approximately 22 billion yen
per year) are borne by Headquarters.
Accounting/Bookkeeping Services
● When an owner who is running a store for full five years has opened two
or more additional stores
The incentive charge for the five-year operation is applied to the multiple
stores ahead of time
● Payment made on behalf of franchisees and store operation
information materials provided by D/O.
Employees' Independence Support System
Guaranteed Minimum Gross Income System
(Gross Profit on Sales – Seven-Eleven Charge)
● For a Type A Agreement, this system guarantees 19 million yen as the
franchisee's gross income.
● For a Type C Agreement, this system guarantees 17 million yen as the
owner's minimum gross income.
(The above is applicable for 24-hour operation stores for both Type A
and Type C.)
Supporting Systems for Staff Members
● Reserves in preparation for the owners and their spouses' death,
disease or retirement, and condolence payments, compensation
payments and reserves for full-time employees' benefits.
● Compensation payments to pay employees for injuries sustained while
they are working or commuting.
30
● When an employee, who has worked at a Seven-Eleven store for five
years or more in total, opens a new store or inherits an existing store as
an owner or as a partner, the "incentive charge for the stores five years
in operation" is applied from the date of opening.
’95
’96
● 80% of utility expenses are borne by Headquarters (approximately 28
billion yen per year)
● 15% of costs incurred for defective items (unsold items disposed of) are
borne by Headquarters (approximately 10 billion yen per year)
● Part of non-life insurance premiums borne by Headquarters
Quarterly physical inventory check
’97
’98
’99
’00
’01
’02
’03
’04
’05
’06
’07
’08
’09 (Fiscal Year)
Source: Research on number of customers conducted by our company (2009)
● Average number of customers per day according to
age group (per store)
● Total number of stores in Japan
(Stores)
12,000
10,000
8,000
Others
30%
5,000
0
59%
6,373
6,875
7,314
7,732 8,153
8,602
9,060
9,690
10,303
10,826
12,034 12,298
11,310 11,735
12,753
Average number
of customers
936
949
50 years old and older
11
14
40 to 49 years old
12
985
(%)
30 to 39 years old
22
28
14
44
15
18
17
20
22
6,000
20 to 29 years old
13
23
37
14
35
4,000
29
2,000
0
Population composition
ratio in Japan
according to age
1019
Under 20 years old
’95
’96
’97
’98
’99
’00
’01
’02
’03
’04
’05
’06
’07
’08
’09 (Fiscal Year)
22
22
17
12
10
’94
’99
’04
’09
Source: Research on number of customers
conducted by our company (2009)
11
18
’09
Source: Statistics Bureau, Ministry of
Internal Affairs and Communications
31
Organization Chart
Corporate History
Franchisees
Kawaguchi
Ichihara
Chiyoda
Setagaya
Ota
Kawasaki-Kita
Kitami
Ishinomaki
Hitachi
Urawa
Kisarazu
Koto
Suginami
Maebashi
KawasakiMinami
YokohamaKita
YokohamaMinami
Ishikari
Furukawa
Koga
Omiya
Narita
Adachi
Nerima
Takasaki
Otaru
Sendai-Nishi
Tsukuba
Kumagaya
Chiba
Ikebukuro
Itabashi
Isezaki
YamanashiHigashi
YamanashiNishi
Hamamatsu
Hikone
Nishinomiya
Hakata
Iwakuni
Iwata
Otsu
Kobe
Fukuoka
Yamaguchi
Nagano
Meito
Kyoto-Kita
Akashi
Kurume
Shimonoseki
Ueda
Toyohashi
Kyoto-Minami
Himeji
Saga-Higashi
Kokura
Sapporo
Shiroishi
Mito
Sakado
Funabashi
Katsushika
Kunitachi
Fujioka
Fujisawa
Matsumoto
Gifu
Kyoto-Nishi
Amagasaki
Dazaifu
Yahata
Tomakomai
Sendai-Higashi
Kashima
Kawagoe
Matsudo
Shinjuku
Hachioji
Nagaoka
Atsugi
Suwa
Kariya
Osaka-Kita
Okayama
Saga-Nishi
Chikuzen
Hakodate
Yamagata
Toride
Koshigaya
Kashiwa
Kamata
Ome
Niigata-Kita
Sagamihara
Chikuma
Toyota
Higashi Osaka
Kurashiki
Nagasaki
Chikuho
Takatsuki
OkayamaHigashi
KumamotoMinami
KumamotoKita
Shonai
Iwamizawa
Aizu
Obihiro
Kuki
Nasu
Mobara
Chichibu
Utsunomiya
Chitose
Koriyama
Oyama
Toda
Kushiro
Fukushima
Ashikaga
Soka
SapporoHigashi
Iwaki
Asakusa
Sakura
Fuchu
Minato
Narashino
Chofu
Shibuya
Shonan
Joetsu
Kodaira
Ichinomiya
Numazu
Niigata-Minami
Odawara
Tsubame-Sanjo
YokohamaNishi
Shizuoka
Chita
Sakai
Hiroshima
Toyama
Yokosuka
Izu
Kasugai
Hirakata
Kanazawa
Yokohama
Chuo
Nagoya-Nishi
Osaka-Minami
HigashiHiroshima
NishiHiroshima
Keihin
Nagoya
Fuji
Wakayama
MiyazakiMinami
24-hour operation began (Toramaru store, Koriyama-city, Fukushima)
May
Total number of stores reached 100
Yamaguchi/
Higashi-Kyushu
Zone
Nishi-Kyushu
Zone
October
1980
November
1981
1982
August
October
1984
February
1985
May
August
1987
March
April
October
1988
Equipment Management 3rd Group
Equipment Management 2nd Group
Equipment Management 1st Group
Equipment Development
Construction Planning
Construction 4th Group
Construction 3rd Group
Construction 2nd Group
Construction 1st Group
Raw Materials/Processed Foods/Non Foods
Daily-Distributed Products
Hokkaido
Daily-Distributed Frozen Products
Metropolitan
Chugoku
Area
Kansai Gunma/
Niigata
Tochigi/
Tokai
Ibaraki
Nagano/
Yamanashi Tohoku
Ambient Temperature Distribution
Kyushu Hokuriku
January
1979
1989
Distribution Planning
Media Contents Promotion
Product Information
Sales Promotion
IT services
Payment service
Non-food products
Beverage/Confectionaries
Liquor/Processed food products
Bread/Dessert
FF/Entree/Delicatessen
Cooked Rice/Noodles
Hokuriku KansaiMinami
Gunma/ KansaiNiigata
Kita
Corporate Sales and Marketing
Hyogo
Existing Store Promotion
Kanagawa
June
1990
Store Management
Payroll
Human Resources
Labor
Ability Development
Employee Training
Owner Training
Payment Service Accounting
Franchisees Accounting
Business Partners Accounting
Payroll System
Fixed Asset System
TokyoTokaiNishi
Nishi Yamaguchi/
HigashiTochigi/ TokyoTokaiKyushu
Ibaraki Higashi 2 Higashi
Tokyo- Shizuoka NishiTohoku Higashi
1
Kyushu
Nagano/ Chugoku
Hokkaido Chiba Yamanashi
1975
August
2nd Operation Department
Saitama
First store opened (Toyosu store, Koto-ku, Tokyo)
1978
Operation Support Department
Chugoku/Hyogo
Zone
GDO
GDO
Kansai
Zone
Tokai
Zone
1st Operation Department
GDO
Nagano/
Yamanashi/
Shizuoka
Zone
Kanagawa
Zone
GDO
GDO
Gunma/Niigata
Zone
GDO
Nishi-Tokyo
Zone
GDO
Higashi-Tokyo
Zone
GDO
GDO
Ciba
Zone
Saitama
Zone
Tochigi/Ibaraki
Zone
GDO
GDO
GDO
GDO
GDO
GDO
Tohoku
zone
Operation Information Department
Kita-Hiroshima
Nara
Hokkaido
Zone
May
Oita
Auditor Department
Osaka-Nishi
Miyazaki-Kita
Higo
1974
September
Operation Secretariat
Shrakawa
Fukuyama
November
1976
Customer Consulting Room
Tsuchiura
Business Support
Kitakami
Operation Support
Asahikawa
March
1992
May
February
1994
Equipment Management Department
Equipment Development Department
Construction Department
Production Control Department
Quality Control Department
Distribution Department
International Merchandising Department
Regional Merchandising Department
Sales Promotion and Advertising Department
IT Payment Department
Processed Foods/Non-foods Department
FF/Daily-Delivered Products Department
Recruitment Support Department
Owner Recruitment Department
4th Recruitment Department
3rd Recruitment Department
2nd Recruitment Department
1st Recruitment Department
Human Resources Department
Recruitment Department
Training Department
DO Accounting Support Department
Franchise Accounting Department
Accounting Management Department
FC Financial Department
1995
Accounting Management
Headquarters
Human Resource
Headquarters
Operation Headquarters
Recruitment Headquarters
Merchandising
Headquarters
Quality Control
Headquarters
Construction and
Equipment Headquarters
Recruitment/Research
Department
1998
Sales Headquarters
1999
Secretarial Office
Beijing Office in China
2003
2004
January
Total number of stores reached 2,000
2005
Barrier-free stores opened
February
June
Tokyo Gas Bill payment service started
Total number of stores reached 4,000
7-Eleven, Inc., became a 100% subsidiary of Seven-Eleven Japan
Total number of stores reached 11,000
2007
March
April
Total number of stores reached 5,000
2008
In cooperation with a ticket seller, Entertainment Plus Inc.,
entertainment ticket services started
The Sixth Generation Integrated Store Information System Introduced
Seven-Eleven achieved the greatest number of retail chain stores in the world
Original electronic money system, 'nanaco' introduced
August
Sale of the "Seven Premium" brand products started in stores
October
Sale of in-store cooked fast food items (using fryer) launched
December
Seven-Eleven Midori no Kikin (Green Fund) established
Number of ATMs of IY Bank Co., Ltd (now, Seven Bank, Ltd.)
installed in stores reached 10,000
November
May
New Headquarters Information System introduced
7 -Eleven, Inc., became a subsidiary of Seven-Eleven Japan
A holding company, Seven & i Holdings Co., Ltd. established
Seven & i Holdings Co., Ltd. listed on the First Section of Tokyo Stock
Exchange
2006
Implementation of ISDN (Serviced by NTT)
Optical fiber communications network introduced
Installation of new multifunctional copy machine with the digital camera
photograph printing function started
September
The Fourth Generation Integrated Store Information System Introduced
Acquired the shares of the Southland Corporation and started
participation in the management
Seven-Eleven (Beijing) Co., Ltd. established as joint venture
May
Total number of stores reached 3,000
Tokyo Electric Power Bill payment service started
Total number of stores reached 10,000
First store in China opened in Beijing (Dongzhimen store,
Dongcheng District, Beijing)
November
Three-times-daily delivery of rice products began
Ticket sale, etc utilizing multifunctional copy machine started
April
Computers which display graphic information form introduced
Interactive registers introduced
Installation of open-cases usable for both hot and cold beverages started
February
Nittele Seven, unification of information media and retail industry, established
Total number of stores reached 12,000
Chilled open-case refrigerators installed
April
Seven-Eleven (China) Co., Ltd. established
Total number of stores reached 6,000
July
Seven-Eleven Net launched
May
January
Mail-order purchase bill payment service started
June
New display cases (Gondola) installed
December
Weather information system introduced
April
Sale of international phone cards started
June
Total number of stores reached 7,000
2010
November
The Fifth Generation Integrated Store Information System utilizing
satellite communications introduced
December
Power-saving devices introduced
October
March
2009
January
February
June
Seven Culture Network Co., Ltd. established
Test sale of the OTC drugs started in stores of 24-hour operation
Seven Net Shopping service started
Business and capital alliance with PIA Corporation established
Copy of residence certificates and "seal registration certificates" issuance
service through the multi-functional copy machine started
(for limited local authorities)
Payment with credit cards started
Magazine subscription reservation service started
Sale of nutritional drinks started
Total number of stores reached 8,000
e-Shopping! Books (now, Seven Net Shopping Co., Ltd.) launched
Online shopping purchase bill payment service started
Audit Office
Budget Department
Planning Department
POS (Point of Sale) system introduced
EOB (Electronic Order Blank) ordering system introduced
August
Total number of stores reached 9,000
Large ice cream display cases installed
November
Owner Counseling
Department
February
Sale of original fast food products without Preservatives and Artificial
Colorings started
April
March
1997
Installation of ATMs (Automatic Teller Machine) of IY Bank Co., Ltd
(now, Seven Bank, Ltd.) in stores started
October
June
1996
May
November
Listed on the First Section of Tokyo Stock Exchange
A meal delivery service company, Seven-Meal Service Co., Ltd.
established (service commenced in September 2000)
IY Bank Co., Ltd (now, Seven Bank, Ltd.) established through joint
investment with Ito-Yokado Co., Ltd.
May
The Southland Corporation's Hawaii operations acquired
October
2002
An e-commerce company, 7dream.com established
(service commenced in July 2000)
April
August
Total number of stores reached 1,000
Sale of prepaid cards started
March
1993
Listed on the Second Section of Tokyo Stock Exchange
December
1991
2001
Order placement using Terminal Seven launched
November
June
February
August
Corporate name changed to Seven-Eleven Japan Co., Ltd.
The system to keep the temperature to 20˚C for rice products
(factories - delivery vehicles - display cases) started
September
2000
Integration of suppliers and combined distribution started
November
November
Finance Headquarters
York Seven Co., Ltd. established
License and area service agreements concluded between
The Southland Corporation, USA (now, 7-Eleven, Inc.)
1973
Planning Office
International Business
Planning Department
Vice President
President/COO
Global Business System
Expansion Project
Consultant
CSR Committee
Board of Directors
Auditor
Chairman/CEO
Seven & i Holdings
32
(As of 16 June, 2010)
In November, 1973, License and area service agreements
concluded between the Southland Corporation, USA
(now, 7-Eleven, Inc.)
Marking the total number of stores reaching 7,000 in June
1997, a party was held in October
In April 2007, Seven-Eleven's original electronic money
system, 'nanaco', started.
SEVEN-ELEVEN
Seven-Eleven 2010 - 2011 Corporate Profile
JAPA n Co., Ltd.
8-8 Niban-cho, Chiyoda-ku, Tokyo, 102-8455
Telephone: 03-6238-3711 (Main)
h t t p : / / w w w. s e j . c o . j p /
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Copyright 2010 Seven-Eleven Japan Co., Ltd.
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